The firm has an existing product with an advertising and promotion budget of $25.0 million, and projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between the products, with 90% of the plant overhead to the existing product and 10% to the new product. Additional values for each product are shown in the table below:

4. Production anticipates it will need to increase capacity to 140 million units, adding $10.0 million to annual fixed costs. If the product allocation of the plant cost is also changed to 80%/20%, what is the impact on break-even units?

MSRP Volume Discount Unit Cost Promotion Allowance Advertising & Promo. Allocated Fixed Costs Projected Unit Sales Existing Product $5.39 35% $1.49 15% $25.0 mill. $68.0 mill. 115 million units New Product $4.99 35% $0.99 20% $20.0 mill. $12.0 mill. 10 million units MSRP Volume Discount Unit Cost Promotion Allowance Advertising & Promo. Allocated Fixed Costs Projected Unit Sales Existing Product $5.39 35% $1.49 15% $25.0 mill. $68.0 mill. 115 million units New Product $4.99 35% $0.99 20% $20.0 mill. $12.0 mill. 10 million units